The Financial Services Authority (FSA) has revealed that it will now regulate all travel insurance providers, including those that sell policies as part of a package deal.
Economic Secretary to the Treasury Ed Balls made the announcement in the wake of concerns that the current system, under which travel agents and other holiday retailers do not receive the same level of scrutiny when selling travel insurance, could be putting Britons at risk.
Now the Financial Services Authority will be regulating all travel insurance sales - a move that will come into effect gradually - giving both the organisation and industry bodies time to adjust.
"Twenty million people are buying travel insurance each year and some are putting themselves and their families at risk by buying travel insurance that may not cover their needs," said Mr Balls.
The government official also spoke of a "knowledge gap", whereby people do not fully understand the product when taking out travel insurance.
Some consumers may find that their credit card includes free travel insurance, yet might find it pertinent to check the level of cover offered to ensure it is adequate for their needs.




